Canadian HR Reporter

Canadian HR RepoRteR March 9, 2015 iNsight 15 James saft GUeST COMMeNTaRY Making training stick: Improving learning transfer Enhancing performance by putting training to use on the job Question: whenever we provide training to employees, we fi nd they aren't really putting what they learned to use and the training doesn't actually result in im- proved performance. what can we do to ensure we aren't wasting our time and resources? answer: ere could potentially be several issues here but the pri- mary problem appears to be one of poor learning transfer, meaning trainees aren't able to recall what they learned or aren't able to put it into practice on the job. ere are several ways to improve learning transfer. However, before training em- ployees it is necessary to ensure they are being trained on the right skills and competencies — and that the issue or problem you are trying to resolve can actually be corrected through training. Training may not be the answer In many cases, training simply isn't the answer and no amount of training is going to improve performance. For example, if the problem is attitudinal in nature, training is unlikely to make a diff erence. at's not to say other types of interventions won't improve per- formance. But if someone already possesses the right knowledge and skills but just isn't using them, the problem is unlikely to be correct- ed through further training. Un- fortunately, many line managers and executives rush to diagnose the problem and assume further training will correct performance defi ciencies. It is, therefore, up to human re- sources practitioners and trainers to push back and insist on com- pleting a proper training needs analysis (or training needs as- sessment) before recommending some type of learning interven- tion. While some people make a distinction between a training needs assessment and analysis, the two terms are more or less interchangeable. e idea is to identify training needs and de- termine how to eff ectively meet those needs. Establishing relevance in the minds of trainees We've probably all sat through corporate training sessions that seemed to have little to no rel- evance to our current roles — or even future roles, for that matter. One way of helping to improve learning transfer is to establish relevance in the minds of trainees. Employees need to know the importance of the training, how it relates to their jobs and how to put it into practice. While theory is important, workplace train- ing and development programs should have a practical compo- nent to them. Adult learners in particular need to understand what's in it for them and be provided with some type of motivation for learning (such as a higher salary or greater marketability). ey should also be given an opportunity to relate what's being taught to their previ- ous experiences and have an op- portunity to learn the way they want to. e role of supervisors Ideally, an employee's supervisor should be involved in assessing training needs and helping to de- sign and develop an appropriate training solution. However, it is particularly important that man- agers and supervisors allow em- ployees an opportunity to practise on the job what they have learned in a classroom setting. In order to do that, supervisors need to buy in to the training and be supportive of their direct reports taking the time to acquire and practice new skills. Above all, because most learn- ing actually occurs on the job — and learning transfer is more ef- fective if trainees are able to learn by doing — managers and super- visors need to facilitate on-the-job training. In fact, the "70:20:10 frame- work" developed by Charles Jen- nings recommends that learning consist of 70 per cent experiential learning, 20 per cent feedback and coaching and only 10 per cent for- mal training. Using this model, it is easy to see that a supervisor can have an impact on up to 90 per cent of an employee's workplace learn- ing. This can be accomplished through coaching, feedback, job shadowing, delegation, process documentation, demonstrations, role play, trial runs and simply providing an opportunity to prac- tise newly acquired skills. It is important to ensure that what was learned in class isn't simply forgotten about or treated as "fl avour of the month." For that reason, employees need to be giv- en a chance to practise what they learned on the job. Other suggestions for improving learning transfer Learning transfer can also be improved through repetition of material, testing, assignments and group discussions. Refresher or followup sessions can also be helpful. A similar concept is interval reinforcement, where trainees are reminded about what they learned periodically through bite- sized chunks of content facilitated by reading assignments, email messages or e-learning tools. It can also help to deliver train- ing in a just-in-time basis, where employees are provided with rel- evant training immediately before they need it to help combat for- getfulness. Other suggestions in- clude having employees train oth- ers on their newly acquired skills, conducting demonstrations and assigning reading based on the training. Brian Kreissl is the Toronto-based product development manager for Carswell's human resources, OH&S, payroll and records retention products and solutions. Brian Kreissl tOUgHeST HR QUeSTiON Walmart's raises not loved by the markets Good HR practices not always winners on Bay Street and Wall Street Editor's note: James Saft is a columnist for Reuters who tackles financial issues. We thought it would be interesting for HR pro- fessionals to get insight on how decisions — such as compensation changes — are viewed through a fi nancial lens. When Walmart starts handing out raises, it may be time to worry about equity market valuations. Last month, the largest retailer and biggest private employer in the United States said it would spend more than US$1 billion to hike pay for half a million workers this year. Walmart will be spend- ing some of the money to help pay for an eff ort to give employees more control over when and how much they work. Walmart shares, you will note, duly fell 3.2 per cent. I am heartily glad that Walmart has raised wages and hope that wage growth is so strong that it eats into corporate margins, now at all time-highs. But I am not convinced that all constituen- cies, including share owners, will benefi t. ere is a temptation to engage in have-your-cake-and-eat-it-too thinking here. Many good things will happen as a result of Walmart hiking wages; even more if the trend gets wider traction. None of these good things will include higher stock market valuations. Walmart, and other employ- ers, have had it pretty much all their own way for decades, as wages fell in real terms despite productivity growth. Wages as a share of GDP are close to their post-Second World War lows while corporate profi ts as a share of GDP are at all-time highs. Walmart specifically has been able to increase its per-employee profi ts by 18 per cent since its 2007 reporting year. is situa- tion — terrible for workers but great for owners — has not been missed by investors, who have bid stocks up. Even using measures which take account of cyclical changes in profi ts the S&P 500 is now in very rich territory, trading on an adjusted P/E multiple only surpassed twice: just before the dot-com and 1929 crashes. It is reasonable to expect this state of play won't last forever. It is also reasonable to think that as it reverses, the value of owning a given dollar of future earnings will fall. To be sure, many of the factors which have undermined bar- gaining power are durable, so we shouldn't be too quick to see glo- balization in outright reverse and the wage share of national income rocketing higher. It is also true that Walmart has been under con- siderable political and legal pres- sure, which — if it is the cause of the wage increase — implies less of a read-across perhaps to other companies and sectors. A durable recovery ere are good reasons to think Walmart is responding to mar- ket pressures. Hourly wages have been rising nicely. Last month's U.S. payrolls report showed an increase of 12 cents per hour, the biggest such increase in close to eight years. Job openings in the U.S. are at their highest since 2001 and voluntary separations are looking reasonably healthy. And Walmart is not alone. In January, health insurer Aetna said it would impose a US$16 per hour minimum wage fl oor which would aff ect 12 per cent of its workforce, a move it said it took to reduce turnover and attract better talent. e overall picture is that la- bor conditions are tightening and wage growth may well continue. Whether we get back to anywhere near historical norms, both in profi t margins and wage share, is impossible to say. It is certainly a long journey. Yet even if travel in this direc- tion is slow, expect the stock mar- ket to rapidly take notice. Not only may higher wages eat into profi ts, they may also help to make the overall valuation backdrop much less equity-market-friendly. at's because the Fed is doubt- less watching. If wages rise strong- ly not only will one of their evident preconditions for a rate hike — a strong labor market — be at hand but we might also see a bit of infl ation. Part of the point of ultra-low in- terest rate policy and maintaining a huge Federal Reserve balance sheet has been to raise valuations in asset markets. Generally the riskier the market, and equities are generally riskier than debt, the greater the impact. Of course Walmart's rising tide of wages may help to lift Walmart's revenue boat, not to mention that of every other business. Still, Walmart is only predicting a one per cent rise in revenue in the coming year. e classic comparison, to Hen- ry Ford's decision to pay workers enough so that they could aff ord cars, is perhaps not apt. Manufac- turing companies as they expand have a bigger magnifying eff ect on their host economies than do retailers. at's why states and lo- calities fall over each other to give inducements to get auto plants rather than big box retailers. Walmart's wage move is good news, just not for equities. At the time of publication James Saft did not own any direct investments in securities mentioned in this article. He may be an owner indirectly as an investor in a fund. You can email him at jamessaft@jamessaft.com and fi nd more columns at http://blogs.reuters. com/james-saft Not only may higher wages eat into profi ts, they may also help to make the overall valuation backdrop much less equity-market-friendly.

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